Chapter 17:Advertising and Public Relations

Does Youth Really Comes in a Bottle?

 

 

According to an online article, L'Oreal suffered "A Public Storm" in 2007 for making false claims against it's products.L'Oreal claimed that it's mascara endorsed by Penelope Cruz "will extend lashes up to 60 %," but like with "Air brushing" miss Cruz was reportedly wearing false lashes. You cannot turn on the television nor read a magazine with out seeing these lash blasting mascaras and creams that will supposedly reclaim youthful skin. Fortunately , the multinational company have a strong Public Relations team in place to handle damage control and restore public  confidence.

That scenario did not stop L'Oreal from using famous faces to advertise it's cosmetics. On the contrary, the company uses more celebrities to endorse it's products, since most women idolizes people like Beyonce  and Charlize Theron and want to look like them. Youth may not come in a bottle but L'O real sure knows how to make it look believable. After all everlasting skin beauty and youth can be yours ", because You're Worth it."

Chapter 15: Retailing- L'Oreal @ Target

L'Oreal is known as one of the leading multinational cosmetic giant. However,the company have a lot of catching up to do in the retail field, with only two retail stores; one in Beverly Center, Los Angeles and another in Westfarms mall, Connecticut. According to BNET.com, L'Oreal opened these two stores not to necessarily to become a part of the retail market, but to find out more about customers buying habit.

    Since L'Oreal's two retail stores are not in New York I decided to window shop at Target ( a popular discount store) to see how L'Oreal's price and promotion translates to the average buyer and who the companyis trying to trying to target in relation to the products on the store shelves.
Upon my visit to Target, I see a small selection of products on display in
comparison to the many different brands own by L'Oreal. Also, the prices are pocket friendly with mark downs.This shows that although L'Oreal is not involve in the direct retail process, the company influences the retail mix in relation to the reaction of customers.For example, L'Oreal's "Lancome" collection at Macys range in price from $59- $98,where Target has" Revitalift" for $11.99 after a $2.55 mark down. This shows that the prices are base on L'Oreal's target market, and merchants retail mix. Moreover, L'Oreal is definitely carrying out it's mission of beautifying the world
no matter their income level.Furthermore, L'Oreal should stick to manufacturing and leave the retailing to department / discount stores, because this approach might seem a bit discriminatory.Because I live in Brooklyn and shop at discount stores does not mean that I cannot afford "luxury" cosmetics. After all, everyone loves a good bargain especially in this market.

Chapter 6: Consumer Decision Making

 Companies like L'Oreal realize that consumers have different driving force that influence their buying habits which can ultimately "make or break" the success of  their businesses. L'Oreal's motto " Because you're worth it," not only adds to brand recognition, but also motivates and coax women into buying it's age-defying products. Inaddition L'Oreal skillfully incorporates "Because you're worth it in every promotion and on most products and packaging. This is an  ingenious motivational tool which L'Oreal has been using to coax women into buying a product with no surety of  results.After all who isn't worth it?

Corporate Irresponsibility : McDonald's- Not Lovin It

  McDonald's is known globally for it's affordable ( and tasty) Burgers, Fries and Shakes and ketchup, but the  fast food giant is not keeping up with it's slogan " I'm lovin it." Records show that the County Department of Health inspection of four Mcdonald's in LAX  found many violations of  health and safety codes. One such violation is condemned food. McDonald's actually store and most likely prepare and serve expired goods to customers and still have the audacity to charge tax. McDonald's is a famous name around the world and another of it's wellknown slogan suggest," what you want is what you get." So does this also translate that the cutomers in different parts of the world who reportedly took ill after ingesting food from McDolnald's and those who reported have bitten into needles actually wanted it? No! This is   negligent and irresponsible corporate behavior of McDonald's. The situation is such that the resturant workers have filed claims with state and federal agencies, reporting dangerous working conditions and violations of labor laws. Like the popular proverb goes," it starts at home," should  McDonald's take care of it's employees and provide safe working conditions for them , they will more  likely  care for the job and extend the same courtesy to customer; and more people will start say "I'M LOVIN IT."

Chapter 5: Developing A Global Vision

                 

    L'Oreal is known as one the world's most dominant multination markets in Europe,China,India and the US just to name a few. L'Oreal has a philosophy that every person no matter their creed, culture or race relates to or belives:

Because You're Worth It( in Chineese)

Because You're Worth it." This slogan is recognize world wide by every man or women and validates why one should invest in product to enhance beauty; " Because You're Worth it." L'Oreal also believes in consistency and in an effort to keep packaging consistent, it adopted the intenational version of it's revtalift that has a side dispenser that enables the product to flow evenly into the hands verses the middle dipenser which can be a bit messy for some users.

Person -to-Person sales in Rural areas

In contrast L'Oreal does not believe in " one -size-fits-all" strategy for success, so marketers think globally and act locally in order to promote it's Anti-aging/ Revitalift creams and capitalize on opportunities.For instance, L'O real sees the rural population of Brazil as a huge market that depends heavily on person-to -person sale so they are putting teams in place to cover those target areas, while providing the more sophisticated with over the top advertising.

Ads' for the mall shoppers/ more sophisticated

L'Oreal says:"Because You're Worth It." Question is,do you think the product is worth buying?

                      

                  

Country of Origin

-Sweater: China
- Knit top: India
-Tank top:India
-Bra        :NA
-Pants    :India
-Under-wear:Indonesia
   

Chapter 3:Ethics and Social Responsibility

 As one of the 100 most sustainable companies in the world and a leader in personal goods, L'Oreal established a code of Business Ethics for it's managers and suppliers to follow.Also, there are guidelines in place for directors to follow when when dealing with employees concern and to ensure their safety. Moreover, the  information is open to all employees and accessible to visually impaired employees.

L'Oreal is also considering how the community at large can be affected
by it's day-to-day operations beyond product and pricing.lL'Oreal is taking the innitiave to conserve water( the best way a business can)and is using low pressure steam instead of hot water for water .  In an effort to increase Eco-efficiency , the company has a strong water conservation programe which resulted in a 13.7% reduction in water usage per finish product. L'Oreal 's  interest in environmental concerns has a lot to do with sustainable development and the benefit of the society which is adopting a greener lifestyle.This is why the company is implementing an Environmental,Health ans safety policy, for  reducing  Green- house gas emissions,water,environmental incidents ,proper waste management and recycling.Biodiversity is also a part of L'Oreal's sustainable innovation commitments.

 L'Oreal's Social Responsibility